Range Resources Corporation: A Prudent Hold Amidst Solid Performance and Cautious Capital Management

Analyst Lloyd Byrne from Jefferies maintained a Hold rating on Range Resources (RRC – Research Report) and keeping the price target at $32.00.

Lloyd Byrne has given his Hold rating due to a combination of factors that reflect Range Resources Corporation’s current financial performance and strategic decisions. Range Resources’ first quarter adjusted EBITDAX outperformed estimates, coming in approximately 9% higher than consensus and Jefferies’ own forecasts. This was partly due to a slight increase in production that edged out expectations by around 1%. Moreover, capital expenditures were greater than anticipated, which indicates a potentially cautious approach to spending.
Moreover, the company has decided to focus on building its cash reserves, demonstrated by the accumulation of $343 million in cash and the repurchase of $15.1 million of its debt. Range Resources ended the first quarter with net debt below the upper end of its target range, and without initiating any share buybacks, signaling that future capital allocation will be an area to watch. This prudent financial management, alongside the reiteration of production and capital expenditure guidance and improved natural gas liquids pricing, seems to underpin Byrne’s Hold rating, suggesting a balanced view of the company’s current situation and near-term outlook.

In another report released yesterday, Susquehanna also maintained a Hold rating on the stock with a $36.00 price target.

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Range Resources (RRC) Company Description:

Range Resources Corp. engages in the exploration, development, and acquisition of natural gas and oil properties in the Appalachian and Midcontinent regions. The company was founded in 1976 and is headquartered in Fort Worth, TX.